TAM Overview, page-7

Hi 3^2+ 4^2=5^2

The fundamental error in your calculations is the cost of production. It is better to use $AUD.

Average cost of production of gold in Australia is in the order to $AUD1000 to $AUD1100 per oz. There are some other producers with a lower cost of production.

Also to use $AUD for the sale price of gold gives a better view of the margins, as the TAM share price is in $AUD.

At present gold is hovering around $AUD1800 per oz.

This gives a margin of between $AUD700 to $800.00 per oz.

Based on an annual production of 100,000 oz pa, the total margin is between $AUD70m to $AUD80m, of which TAM will get 40% being $AUD28m or $AUD32m.

With 1,175m shares and based on $40m that is an annual return of 2.7c per share.

Based on 8 times earning TAM should be in the order of .22c each.

I am of the view that gold price is going to increase so outcome even better.

Interestingly SAR is valued above 8 times at present.

BUT the elephant in the room is MLX and having spent the last 30+ years in construction industry disputes, it could go any way.

Wonder what is the cause of today's big jump?